Question 1

Which of the following theories would suggest that attending school does not improve productivity but that high- ability people are more likely to stay in school?

Accepted Answer

Signaling theory proposes that education is not only about acquiring skills and knowledge, but also about sending a signal to employers about one's abilities and work ethic. Therefore, attending school may not necessarily directly improve productivity, but rather serve as a signal to employers about a person's high ability and likelihood to succeed in the workforce.

Question 2

In the signaling theory of education,

Accepted Answer

The signaling theory of education states that education serves as a signal to potential employers that the worker is a valuable employee because he was willing to spend time and resources to attain that education. This signal becomes more valuable if education is difficult to attain, as it shows the worker's determination and ability to persevere. Discrimination can still affect wage differentials, but education can help mitigate its effects by providing a valuable signal of the worker's abilities. The theory focuses more on the long-term benefits of education, but it does not necessarily imply that education makes workers more productive in either the short or long run.

Question 3

Which theory would support the idea that education does not enhance productivity and therefore raising all workers' educational levels would not affect wages?

Accepted Answer

Signaling theory suggests that education primarily serves as a signal to employers about the potential productivity of the worker, rather than actually enhancing productivity itself. Therefore, according to this theory, raising all workers' educational levels would not necessarily lead to an increase in wages, as it is the signaling value of education that matters rather than the actual knowledge or skills gained.

Question 4

If the signaling theory of education is correct,

Accepted Answer

The answer of If the signaling theory of education is...

Question 5

A signaling theory of education suggests that

Accepted Answer

The answer of A signaling theory of education suggests that
...

Question 6

Which of the following statements represents the idea behind signaling in education?

Accepted Answer

The answer of Which of the following statements represents the...

Question 7

According to proponents of the signaling theory of education, an increase in the education levels of all workers would

Accepted Answer

The answer of According to proponents of the signaling theory...

Question 8

According to the signaling view, education

Accepted Answer

The signaling view posits that education primarily serves as a signal to employers about an individual's inherent abilities, such as intelligence, diligence, and capability, rather than directly enhancing productivity.

Question 9

James earns a degree from a top university and is hired by a prominent firm because executives at the firm believe that graduates of this university must have a high ability level or they would not have graduated. Which of the following theories of education do the executives believe?

Accepted Answer

The executives believe in signaling theory, which suggests that the value of education lies in the ability to signal one's abilities and qualities to potential employers. In this case, James's degree from a top university is seen as a signal of his high ability level.

Question 10

The signaling theory of education is most similar to the

Accepted Answer

The signaling theory of education suggests that education functions as a signal to potential employers of an individual's qualities such as intelligence, work ethic, and conformity. This is similar to the signaling theory of advertising which suggests that advertising functions as a signal of the quality of a product. Both theories focus on the transmission of information between parties. The human capital theory of education, on the other hand, emphasizes the role of education in increasing an individual's productivity and earning potential through the acquisition of skills and knowledge. The discrimination theory of advertising is not relevant to education, and the efficiency wage theory of labor economics focuses on the incentive for employers to pay above market wages to increase worker productivity, which is not directly related to education.

Question 11

In the signaling theory of education,

Accepted Answer

The answer of In the signaling theory of education,
...

Question 12

Suppose that the country of Libraria made a concerted effort to increase the educational level of its people. If this effort had no effect on the wages of its workers, one might consider this as evidence in support of

Accepted Answer

If increasing educational level does not result in an increase in wages, it suggests that education is not necessarily increasing productivity but rather acting as a signal to employers that an individual possesses desirable traits such as dedication and intelligence. This supports the signaling view of education.

Question 13

A college degree makes a person more productive according to

Accepted Answer

The human-capital theory of education posits that education increases productivity by providing individuals with valuable skills and knowledge. Therefore, according to this theory, a college degree would make a person more productive. On the other hand, the signaling theory of education suggests that education serves as a way for individuals to signal their abilities and qualities to employers. However, this theory does not necessarily imply that a college degree makes a person more productive. Therefore, the correct answer is B, as the human-capital theory supports the idea that a college degree increases productivity.

Question 14

If the signaling theory of education is correct,

Accepted Answer

The signaling theory of education suggests that additional years of formal schooling do not necessarily increase a worker's productivity, but rather serve as a signal to employers of the worker's abilities and characteristics. Therefore, workers with more years of formal schooling may not necessarily earn more or be less affected by ability, effort, and chance.

Question 15

According to the signaling theory of education,

Accepted Answer

The signaling theory of education suggests that schooling signals certain traits and characteristics to potential employers, just as advertising signals certain qualities to consumers. It does not necessarily imply that education directly enhances productivity or that natural ability is more important than education.

Question 16

According to the signaling theory of education, better-educated workers

Accepted Answer

The answer of According to the signaling theory of education,...

Question 17

Which of the following statements can be called a productivity-revealing theory?

Accepted Answer

The answer of Which of the following statements can be...

Question 18

Jake and Harry each have 130 hours of college credit from Impressive University. Each has 30 hours of economics. Jake has a bachelor's degree, while Harry is 3 credits short of required physical education classes and therefore does not have a degree. Each of them has one year of experience as a market analyst for ABC Company. Assuming that the physical education class would not enhance Harry's job performance, if Jake earns a higher salary than Harry, the ABC Company may subscribe to the

Accepted Answer

The answer of Jake and Harry each have 130 hours...

Question 19

According to proponents of the signaling theory of education,

Accepted Answer

The answer of According to proponents of the signaling theory...

Question 20

Which of the following statements is correct?

Accepted Answer

The human-capital theory of education suggests that education increases productivity by enhancing the skills and knowledge of individuals, making it a productivity-enhancing theory. Choice B is incorrect because the human-capital theory is not primarily focused on revealing productivity, but rather improving it. Choice C is incorrect because the signaling theory of education suggests that education serves as a signal of individual ability, rather than directly improving productivity. Choice D is also incorrect because while there may be criticisms of the signaling theory, it has not been completely disproven.

Quiz 19: Earnings and Discrimination

Which of the following theories would suggest that attending school does not improve productivity but that high- ability people are more likely to stay in school?

In the signaling theory of education,

Which theory would support the idea that education does not enhance productivity and therefore raising all workers' educational levels would not affect wages?

If the signaling theory of education is correct,

A signaling theory of education suggests that

Which of the following statements represents the idea behind signaling in education?

According to proponents of the signaling theory of education, an increase in the education levels of all workers would

According to the signaling view, education

James earns a degree from a top university and is hired by a prominent firm because executives at the firm believe that graduates of this university must have a high ability level or they would not have graduated. Which of the following theories of education do the executives believe?

The signaling theory of education is most similar to the

In the signaling theory of education,

Suppose that the country of Libraria made a concerted effort to increase the educational level of its people. If this effort had no effect on the wages of its workers, one might consider this as evidence in support of

A college degree makes a person more productive according to

If the signaling theory of education is correct,

According to the signaling theory of education,

According to the signaling theory of education, better-educated workers

Which of the following statements can be called a productivity-revealing theory?

According to proponents of the signaling theory of education,

Which of the following statements is correct?